Dollar mostly sticks to recent ranges but jumps vs. pound

LisaTwaronite

SAN FRANCISCO (MarketWatch) -- The dollar was mostly steady in recent ranges against major currencies Wednesday but jumped against the British pound sterling, after the minutes of the Bank of England's December meeting showed its monetary-policy committee unanimously backed a cut in interest rates. That set the stage for lower rates in early 2008 as worries about a weakening economy clearly outweighed inflation concerns. The pound "sold off after the BoE minutes showed that the MPC rallied around the December rate cut decision, defying market expectations that inflation concerns would have given rise to a camp of dissenters," said Matthew Strauss, senior currency strategist at RBC Capital Markets. The pound was at $2.0044, down from $2.0122 in late U.S. trading Tuesday. The dollar index, which tracks the greenback against a basket of six major currencies, was at 77.495, up from 77.440 late Tuesday. Against Japan's currency, the dollar was buying 113.09 yen, compared with 113.37 yen Tuesday. The euro was trading at $1.4392, compared with $1.4402 late Tuesday, after the Ifo index, a key measure of Germany's business climate, slumped to a 22-month low due to the effects of rising inflation and the global credit crunch.

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